honghua-prices-ipo-in-the-middle-of-the-range

Honghua prices IPO in the middle of the range

The price pitches the oil rig manufacturer at a discount to its key comparables and allows it to raise $409 million.
March 02, 2008
Honghua Group, which manufactures oil and gas drill rigs for the onshore market, has become the first company of size to complete a Hong Kong initial public offering this year after fixing its offering price at the mid-point of the range. The final price of HK$3.83 resulted in a base deal size of HK$3.2 billion $409 million.

Investors who were looking at the deal say joint bookrunners Credit Suisse and Morgan Stanley had indicated during the bookbuild that there was price sensitivity in the lower half of the order book, although sources say the deal was well covered across the range. The decision to keep the price in the middle suggests that...
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